Business entities operate on the surface of the earth. they do not operate in vacuum or in the sky. they are the citizens of the area where their firms are located. as local citizens, they are part of the local community. So they have some obligations to the local society whose and, air, water, roads and other facilities they enjoy. So policies stem from variety of people and place. policies are, therefore, based on sources which influence their content and meaning. These sources are :
1. Experience an existing practices of the organization.
2. Prevailing practices pursued by other firms in the locality as well as practices pursued by similar firms in the country.
3. Attitudes, ideas and philosophies nourished at all levels of management comprising board of directors at the top and down to the level of supervisors.
4. Knowledge and experience accumulated through handling of day to day employee problems and difficulties.
5. Employee suggestions and ideas and handling of complaints.
6. Position of unionism and attitude of union leaders towards management.
7. Experience of collective bargaining.
8. Governmental rules and regulations having impact on the working of business enterprises.
9. Changes taking place in the national economy and government’s external policy.
10. Cultural practices in the plant and in the country’s social, economic and political life.
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